ELLISON, MARTIN; YATES, TONY - In: Journal of Money, Credit and Banking 39 (2007) 4, pp. 981-993
Why has inflation been so stable in developed economies since the early 1990s? In this paper, we answer that the United States and other countries may have escaped from a volatile inflation equilibrium. Our argument builds on the story proposed by Tom Sargent in "The Conquest of American...